Grants Management Committee Recommendations David McCoy, State Controller Presented by Andy Willis, State Budget Director December 13, 2012
Session Law 2012-142 Grants Management Oversight Committee created and charged with: Coordination of development of enterprise grants management system to replace all redundant grants management systems Directing OSBM s planning and implementation of a new enterprise grants management system The committee is made up of the following members: David McCoy, State Controller (Committee Chair) Tom Newsome, Deputy State Controller Andy Willis, State Budget Director Beth Wood, State Auditor 1
Current Grants Management Systems NC agencies currently operate more than 20 separate grants management systems Several agencies are still using fully manual processes Table 1 - Existing Grant Applications Category Custom, in-house developed & supported Custom, vendor developed & supported COTS*, vendor supported Software-as-a-Service (SaaS) Total Manual Processes - No IT Applications *Commercial Off-the-Shelf Applications/Agencies 13 applications 2 applications 3 applications 3 applications 21 applications 5 agencies 2
Grants Management Requirements What are the state s business needs for grants? OSC conducted business requirements gathering in 2008 With agency input, OSBM updated the 2008 requirements, with 2 major categories: State-as-a-grantor State-as-a-grantee 3
Grants Management Requirements A comprehensive enterprise grants management system must include the following: State as a grantor: Application for non-state entities to receive State grant funds Payment processing and monitoring Grantee reporting Audit State as a grantee: Federal draw-down Reports on use of federal funds 4
Methodology Study by Gartner, Inc. used to identify Best-of- Breed and ERP grant systems A Best-of-Breed application is the best application for one particular function, such as grants An Enterprise Resource Planning (ERP) application performs all business functions, such as finances, grants, fleet maintenance, and HR/payroll, as one integrated system 5
Conclusions SAP identified as leading Best-of-Breed application However, Financials should be included in order to capture State-as-a-grantee requirements, necessitating an ERP SAP is the only ERP with the capability of meeting NC s grants needs 6
Conclusions In addition, NC already has significant SAP resources BEACON HR/Payroll operates on an SAP platform DOT s ERP implementation was the basis for SAP s public sector package DOT has fully implemented SAP as an ERP, including grants management DOT s record of successful implementation has resulted in DOT being seen as a leader in grants management DOT has provided info or demos of their SAP implementation to over 30 governmental entities across the US and Canada 7
Recommendations Implement full SAP ERP based on DOT implementation SAP is the leading enterprise grants management software for large public sector entities Financials must be included in order to capture State-asa-grantee requirements SAP is the only ERP capable of meeting NC s needs from both a grants and financials perspective Additionally, NC already has significant SAP resources BEACON HR/Payroll operates on an SAP platform DOT s ERP implementation was the basis for SAP s public sector package 8
Recommended Steps: Short-Term Agencies in need of new grant management systems prior to the implementation of a statewide solution should work with OSBM and DOT to adapt DOT s existing SAP solution as Best-of-Breed (excluding Financials) Existing or future grants-related IT projects would be redirected toward the long-term statewide enterprise effort Agencies taking the short-term approach would move to the statewide solution if that solution is different from the existing SAP solution 9
Recommended Steps: Short-Term Reauthorize Grants Management Oversight Committee as a Steering Committee, expand to include agency participants Agencies with both State-as-grantee and State-asgrantor needs Conduct a planning assessment to determine actual implementation process and cost 10
Recommended Steps: Long-Term Begin implementation of ERP based on recommendations of planning assessment Anticipated phased implementation, agency-by-agency over 5-year period Consider centralizing SAP resources in a statewide financial oversight agency (such as OSBM or OSC) with a direct SAP appropriation Governance decisions would be accomplished through this agency 11
Questions? 12